Lovell hits back at 'money grabbing' accusation - TravelMole


Lovell hits back at ‘money grabbing’ accusation

Friday, 15 Mar, 2005 0

GTMC Conference Special: Guild of Travel Management Companies chairman Richard Lovell has defended his members after they were dubbed money- grabbers by corporates.

He said most companies, particularly the financial directors, did not appreciate the value and savings made by a TMC.

Lovell’s comments followed a presentation at the GMTC conference where Oracle and PricewaterhouseCoopers said TMC’s are perceived as money-grabbers and have poorly trained staff.

“It should be said this is a perception, not a reality,” Lovell told Travelmole.

“On average TMC’s charge around 3-4% of a client’s travel spend but with the deals we have save them up to 25% during the year.

That’s good value but most do not realise the value we bring.

We need to make them aware of it.”

The problem stems from the shift from a commission-based income to one of charging service fees, something FDs have struggled with, said Lovell.

“It used to be a free service now they are having to pay.

We are providing a business service and we have to charge.

That’s not money grabbing, it’s business,” he said.

Lovell also threw back the same money-grabbing accusations at business consultants – such as PricewaterhouseCoopers.

“When you receive an invoice for a consultant you ask what am I paying for?” he said.

Lovell, Carlson Wagonlit chief operating officer EMEA, also refuted accusations of poor service, claiming corporates want to pay as little as possible yet still expect a faultless service.

He said corporates attempt to drive down prices but “start screaming” as soon as it goes wrong.

Report by Steve Jones



 

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Ginny McGrath



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